An Econometric Analysis on Cross-cultural Adaptability : A Case of Taiwan Multination Company in Thailand

Abstract

On facing the trend of globalization, cross-cultural adaptability is an important issue for multinational companies in order to harmonize the operational and manager level employees. Hence, business leaders need some guidelines to identify the phenomenon of cross-cultural work situation and to select the best fit employees to cope with cross-cult ural issues by providing the right Human Resource management. To explore the cause and effect of cross-cultural adaptability, this study adopts the theoretical framework of Two Factor Theory of job satisfaction. It is found that cross-cultural satisfaction and cross-cultural adaptability are highly correlated. It means if employees/managers can adapt to different cultures, they will fulfill their satisfactions as well. A T-test analysis shows Thai and Taiwanese cross-cultural adaptability and satisfaction are significantly different. The Two Factor Theory is improved and the demographic variables are added to explain the Cross-cultural adaptability. The Econometric Three-dimension factors model is built by Shih and Chinerawat with a total of 323 research participants (285 Thai staff and 38 Taiwanese) from three Taiwan companies in Thailand. The empirical results show three critical factors of cross-cultural adaptability: motivator factors, hygiene factors and demographic factors and high significance at 95.1- 99.3% (R square). These three critical/important factors are delineated next in Emperical result part.